Singapore Upgrading to get Fresh Opportunities and Cater to New Business Models

Singapore is planning to upgrade its trade pacts to get improved access to global markets for its local firms and businesses, and also to cater to new business models as shared by the Minister for Trade and Industry, Chan Chun Sing.

It is also going to expand its free trade agreement (FTAs) network to aid Singapore enterprises enter into more economies, and assist in diversifying the nation’s markets and supply chains.

Mr. Chan also said that they want to expand their FTA network to provide our enterprises a privileged access to more and newer markets in comparison to our competitors. This will not only diversify their markets and supply chains but we would also not completely depend on any one specific market.

He also mentioned that they are also in a process to broaden their reach by planning FTAs with the Pacific Alliance, Eurasian Economic Union, and the Southern Common Market in South America (Mercosur). Especially for long-term, they should take up more opportunities in specifically in the new, emerging markets by acquainting themselves with the regulations and business networks and also the culture in those regions. Mr. Chan also explained how the authorities are planning to prepare the Republic and get ready for the next stage of development.

Other parts of Singapore’s strategy comprise transforming various industries to grab fresh opportunities, enhancing the skill-sets of workers, improving the capabilities of businesses, and enabling faster and effective regulations to get a more pro-business environment, thus empowering enterprises and consumers.

Due to several benefits from the pacts, Singapore’s business with its FTA partners currently totals to 92 percent of its total business or trade in goods and service. Enterprises here also recorded tariff savings of almost $730 million in the year 2016, which went up from $450 million a decade ago, which meant that such savings are a major advantage that is derived from signing FTAs.

Mr. Chan also assured that the ministry would continue to work with the Singapore Business Federation and various trade associations and chambers to assist businesses to get advantage from the FTAs.

During its chairmanship of Asean in 2018, Singapore completed various initiatives to develop the region into a more attractive destination for setting up a business, company formation in Singapore or doing investments.

This also meant having the Asean Single Window, under which now there are five Asean countries who are exchanging their business and trade documents electronically, while the remaining countries would be coming on board in 2019. An Asean agreement regarding e-commerce was also signed, among others.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership in 2018, which was Singapore’s first trade pact with Canada and Mexico and also the European Parliament’s approval of the European Union-Singapore FTA earlier this year came into force.

Singapore’s trade agreements map up to the efforts by the Republic and partners with similar objectives to advance the international rules and regulations and support the rules-based multilateral trading system personified in the World Trade Organisation.

Singapore is currently working actively with like-minded members of WTO, which includes recently giving an e-commerce joint statement to assist in decreasing the cross-border obstacles on this front, while welcoming new associations to push the envelope on digital trade.

Mr Chan also mentioned Singapore’s challenges in his speech, such as the uncertainties of the US-China trade relations and collaborations in the near future and transformation in the international trade patterns and also the production chains in the mid-term.

In the long-term, Singapore has to carefully observe the developments in global taxation, which is going to shape the Republic’s attractiveness as the best business destination in future.

He said that if they can get the fundamentals right, they can be unique and attract more global investors to come to Singapore and create better jobs. These fundamentals should include efficient governance which is based on long-term political stability and effective planning; an international mindset; a competitive edge in terms of innovation and high levels of creativity and standards; and a talented workforce with a focus on regular training and learning.